Social workers dedicate their careers to helping individuals and communities through life’s challenges. However, working with vulnerable populations also exposes social workers to potential legal risks. While social work professional liability insurance is designed to protect against claims of negligence, errors, and omissions, many social workers misunderstand its importance or coverage. These misconceptions can leave professionals exposed to lawsuits and financial burdens.
In this blog, we’ll debunk common myths about social work professional liability insurance and explain why every social worker needs it—whether you work in private practice, a school, or an agency.
Myth 1: “I don’t need my own liability insurance if I work for an agency.”
Many social workers believe that their employer’s insurance provides sufficient coverage. While this may partially protect you, relying solely on your employer’s policy can leave you vulnerable.
Reality: You May Be Personally Liable
Employer-provided insurance primarily protects the organization, not individual employees. If a claim is filed against both you and your employer, their policy might prioritize the organization’s defense, potentially leaving you with gaps in coverage. Additionally, your employer’s insurance may not cover incidents outside of work hours, such as volunteer services or freelance work.
Example: A social worker employed by a nonprofit is sued by a client for alleged emotional harm. While the organization’s insurance covers part of the lawsuit, the social worker must defend themselves individually. Without social work professional liability insurance, they face significant out-of-pocket costs.
Tip: Securing your own policy ensures you are fully protected, even if your employer’s coverage has limits.
Myth 2: “Professional liability insurance is only necessary for social workers in private practice.”
It’s a common belief that only private practice social workers need liability insurance. However, every social worker—whether working in schools, hospitals, government agencies, or community centers—faces risks.
Reality: All Social Workers Face Legal Risks
Claims can be filed against any social worker, regardless of their work environment. School social workers might face lawsuits from parents who believe their child didn’t receive adequate care. Healthcare social workers could be sued if a patient’s family claims their loved one didn’t receive necessary services.
Example: A school social worker is sued after a student claims inadequate support led to worsening mental health. The school’s insurance covers the institution, but the social worker faces individual legal defense costs. Social work professional liability insurance would cover these expenses.
Fact: Liability claims are on the rise across all social work settings, making personal coverage essential.
Myth 3: “I’ve never had a lawsuit, so I don’t need insurance.”
It’s tempting to believe that because you’ve never faced a lawsuit, you won’t need insurance. Unfortunately, no one is immune to legal claims.
Reality: Lawsuits Can Happen Anytime
Even with a spotless record, you can face claims of negligence, privacy breaches, or emotional harm. Often, lawsuits are not about the actual care provided but rather perceived harm or dissatisfaction. Social work professional liability insurance protects against legal fees, settlements, and judgments—even in cases where claims are baseless.
Example: A client accuses a social worker of disclosing confidential information, causing emotional distress. Defending this claim, even if it’s unfounded, could cost thousands. Liability insurance would cover these costs.
Tip: Insurance provides a safety net, ensuring you’re not financially devastated by legal defense costs.
Myth 4: “Professional liability insurance is too expensive.”
Some social workers avoid liability insurance due to concerns about the cost. However, not having insurance can be far more expensive.
Reality: Insurance is Affordable and Worth It
Most social work professional liability insurance policies are cost-effective, especially when compared to defending a lawsuit. Coverage can cost less than $300 per year, depending on your work setting and policy limits. Without insurance, defending a lawsuit could cost tens of thousands of dollars—even for cases that never reach court.
Example: A social worker is sued for negligence after a client alleges inadequate counseling. Defending the claim costs $15,000. Liability insurance covers these expenses, leaving the social worker financially secure.
Fact: Liability insurance is a small price to pay for peace of mind and financial protection.
Myth 5: “General liability insurance covers professional mistakes.”
Some social workers believe that their general liability insurance is enough to cover professional mistakes. However, general and professional liability insurance serve different purposes.
Reality: General Liability Insurance Isn’t Enough
General liability insurance covers incidents like client injuries on your property but does not cover claims related to negligence, errors, or omissions in your professional services. Social work professional liability insurance is specifically designed to cover professional misconduct claims.
Example: A client trips in your office and breaks their ankle. General liability insurance would cover their medical bills. However, if that same client sues you for failing to provide adequate care, only professional liability insurance would cover legal defense and settlement costs.
Tip: Having both general and professional liability insurance ensures comprehensive protection for all potential risks.
Myth 6: “Liability insurance only covers lawsuits.”
Some social workers think that liability insurance only helps in lawsuits. In reality, it covers a broader range of risks.
Reality: Insurance Protects Beyond Lawsuits
Social work professional liability insurance also covers licensing board complaints and settlements. If a client files a complaint with your licensing board, the insurance can help cover legal defense costs. Many policies also provide access to legal advice, helping you prevent claims before they arise.
Example: A client files a complaint with your state’s licensing board, claiming emotional harm. Your liability insurance covers the costs of defending your license, sparing you from significant expenses.
Fact: Liability insurance goes beyond lawsuits—it helps safeguard your professional reputation and credentials.
Protect Your Career with Social Work Professional Liability Insurance
Misunderstanding social work professional liability insurance can leave social workers vulnerable to legal and financial risks. Regardless of your work setting or experience, personal liability insurance is essential for financial security and peace of mind.
At Rich & Cartmill, we offer affordable, comprehensive social work professional liability insurance tailored to your needs. Contact us today to learn more about protecting your career and reputation, or click here to learn more about professional liability insurance through Rich & Cartmill. If you are interested in learning more about professional liability insurance for social workers, click here to find an agent!